David Teten
MARCH 14, 2018
Managers of VC funds typically want to grow their business aggressively, just like the founders we back. This is a model used in at least one case by China’s third-largest private equity firm, China Science & Merchants Investment Management Group ($12 billion+ AUM), which funded in 2015 CSC Upshot, a $400m seed fund through AngelList.
Professor VC
JANUARY 17, 2008
One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. One of the panelists mentioned that they have gotten very valuation sensitive (nothing wrong with that) and like to purchase preferred stock rather than invest in convertible notes.
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Tim Keane
APRIL 12, 2006
We don’t like them and would prefer not to be involved. If the investors ideal size is smaller than your need, you ought to ask about syndication. If they don’t like to syndicate, or don’t have a track record of doing it, you will want to consider your options. Fewer investors will take common stock in early stage transactions.
www.paulgraham.com
APRIL 28, 2010
And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. Some angel investors join together in syndicates. The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains.
www.paulgraham.com
APRIL 28, 2010
You give a startup money and they give you stock. Youllprobably get either preferred stock, which means stock with extrarights like getting your money back first in a sale, or convertibledebt, which means (on paper) youre lending the company money, andthe debt converts to stock at the next sufficiently big fundinground. [
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